Honda increases power

The Japanese concern is going to build four car factories

The automobile concern Honda Motor yesterday unveiled a development plan for the coming years, which includes active expansion in the North American market and expansion of production at home, in Japan. A total of four plants will be built with a total cost of $1.2 billion - two in Japan, one in the USA and an engine production plant in Canada, the BBC reports. The company also plans to increase capacity at its existing plants in India and Brazil.

The most expensive will be the Japanese project - the start of production near Tokyo will cost the country's third largest automaker $640 million. Over the past 25 years, the company has not opened a single plant in Japan. The construction of two factories at once, experts believe, indicates the good financial condition of the concern. Global sales of Honda vehicles are currently at a high level and, according to forecasts announced by the company's President and CEO Takie Fukui at a recent press conference, by 2010 they will exceed 4.5 million units per year. By this time, the concern also hopes to sell more than 18 million motorcycles a year, which is 34% more than current figures, Reuters reports. "Assessing changes in consumer sentiment led us to decide to grow," Mr. Fukui said. “Global competition will only intensify.”

The location for the construction of the American plant has not yet been determined. It is only known that the project is estimated at $400 million, and its launch is scheduled for 2008. The enterprise will produce about 200 thousand cars, and the staff will be about 1.5 thousand jobs. Investments in an engine production plant in Ontario, Canada are estimated at a much smaller amount - $140 million. Its capacity is designed for 200 thousand engines per year. Honda Motor currently has factories in Ohio, Alabama and the Canadian province of Ontario.

Recently, the requirements for the cars of many owners have changed greatly, especially in the USA. Consumers prefer economical small cars over the once popular large SUVs. Taking into account the trend, Honda will likely launch production of subcompact models such as the Civic and Fit at the new plants. In addition, the company is preparing to introduce a new low-cost hybrid four-cylinder car with a diesel engine to the market by 2009, the BBC notes. This model will meet new, stricter California environmental standards.

Denis UVAROV